August 10, 2016
China Broiler Weekly: Surge in supply drags down prices (week ended Aug 3, 2016)
An eFeedLink Exclusive
AA broiler prices slid a whopping 5% during the period in review, as farmers released finishing broilers that releases were delayed due to floods and heavy rains in several regions. With demand for chicken showing little improvement, slaughterhouses supressed prices in a bid to maximise profits.
Chick prices dropped prominently to RMB2.60-3.50/bird amid slack buying interest.
Although prices of native broiler rose 3% in Guangdong, average price dropped more than 3% over the week as prices dipped in all other regions amid excess supplies. In the east, prices plunged almost 10% with demand exceptionally weak.
Native chick prices were soft but price falls were limited as supplies dwindled of late.
Broiler prices are expected to stabilise after the recent sharp falls, as most farms have cleared excess stocks. However, the upward scope of the broiler markets will be limited in the near term with demand for chicken slow.
RMB=US$0.1506 (Aug 10)
eFeedLink offers monthly China hog and poultry market trackers, including analyses and on-the-ground information from Guangxi, Guangdong, Hunan, Hubei, Sichuan, Jiangsu, Henan, Shandong, Hebei and the whole of China. These provinces cover at least 70% of the total hog, poultry and related feed production or consumption in China. For more information, visit: /eFLResearch
All rights reserved. No part of the report may be reproduced without permission from eFeedLink.